Partnership, Financial Accounting

Assignment Help:

Definition:

A partnership is defined as “the relationship that subsists between two or more persons carrying on a business in common with a view to making a profit.” (Partnership Act).

Membership:

There may be a minimum of two and a maximum of twenty members in a partnership. In the U.K however, the Partnership Act 1934 CAP 29 provides that the maximum number of partners in a firm that offers personal/professional services may be up to 50 if each partner is professionally qualified, e.g. Accountants, Lawyers, architects doctors, surgeons etc.

Types of Partners:

Partners may be classified into the following categories:

a)    Active or dormant;
b)    Limited or Unlimited;
c)    Adult or Minor;
d)    Real or Quasi.


Related Discussions:- Partnership

List four limitations of ratio analysis, SECTION B QUESTION 2: Tw...

SECTION B QUESTION 2: Two companies Juk Ltd and Roop Ltd operate in the tourism sector. Financial forecasts are provided below: Income Statement for yea

Determine the net present value for the project, An investment project requ...

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital

What are the tax effects of the debt adjustments, Harry purchased equipment...

Harry purchased equipment for his business and gave the seller cash and a note due in two years. Larry also purchased business equipment, but financed the transaction with a bank l

Lenders evaluation, Lenders'  evaluation:   Current  Assets  to  Current  L...

Lenders'  evaluation:   Current  Assets  to  Current  Liabilities,  Quick  Assets  that is current assets minus inventories to Current Liabilities, Long term Debt to Net Assets, to

What would be the balance in the paid-in capital, Horton Co. was organized ...

Horton Co. was organized on January 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5-iss

Vat, a recommendation regarding the current south African vat system

a recommendation regarding the current south African vat system

Case law about investment, If you inherited $45,000 today and invested all ...

If you inherited $45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

Agreements to settle property-bankruptcy and liquidation, Agreements to set...

Agreements to settle property The trustee is not bound by such an agreement if it remains executory. If property has already been settled, the trustee can recover it unless it

Ownership and control related issue of debt, Q. Ownership and Control relat...

Q. Ownership and Control related issue of debt? Issuing equity is able to have ownership implications for a company particularly if the finance is raised by a placing or offer

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd